M&C Saatchi LA is one of the first high profile agency casualties of the Covid-19 virus, announcing its closure on Twitter.
After 15 years in business, we are devastated to report that we are closing in the light of the recent pandemic and the resulting economic uncertainty. Our hearts are full of gratitude for all of the amazing clients and staff who have been a part of our family over the years. pic.twitter.com/L1YZ7knVoJ
— M&C SAATCHI LA (@MCSAATCHILA) April 3, 2020
Although not especially big, an LA outpost is important to any agency with global ambitions but M&C was already badly wounded by the accounting scandal that saw it put aside £11.6m last year to cover various irregularities. It’s still waiting for a full financial report.
The agency, which has a big international network, albeit partly-owned for the most part, is now valued at a seemingly bargain basement £30m compared to a high before the scandal broke of over £400m. All agency share prices have taken a powder in the crisis of course (WPP is valued at just above £6bn compared to a high some years ago of £20bn) but M&C’s days of independence – even survival – look numbered.